Omnova Solutions India is the only manufacturer of acrylonitrile butadiene rubber (NBR) and is the second-biggest maker of high styrene rubber (HSR) after Apcotex in India.

It has a factory at Valia in Gujarat, which it acquired in 2010 from France’s Eliokem International. The French firm had bought the plant from Apar Industries in 2008.

The acquisition of Omnova Solutions will help Apcotex become the largest manufacturer of NBR and HSR in the country. Apcotex is also looking to invest Rs 40 crore more in the acquired business.

The acquired business will bolster Apcotex’s balance sheet by adding additional gross revenue of around RS 200 crore. Apcotex reported gross revenue of Rs 391 crore, EBITDA of Rs 47 crore and PAT of about Rs 25 crore for the financial year ended on March 2015.

“This sizeable bolt-on acquisition bolsters our optimism about the long-term value creation potential of Apcotex. We gain access to new product lines, new technologies and new processes with a potential to scale up significantly,” said Apcotex’s managing director Abhiraj Choksey.

“We will continue to focus on improving market share and capacity utilisation in India, reducing high cost structures and optimising usage of capital. We believe this acquisition will yield a superior value to all our stakeholders,” added Choksey.